How will your region fare in the property downturn?

London, which some expect to be immune from the downturn because of the impact of wealthy foreign buyers, could, in fact, be hit hardest

The government’s big cuts to the housing budget could damage the ability of
first-time buyers to get on the property ladder, dampening the housing
market still further.

The government aims to build only 37,500 affordable homes a year over the next
four years, 25% fewer a year than the current target of 155,000 in the three
years to 2011.

Melanie Bien of Private Finance, the mortgage broker, said: “First-time buyers
are the lifeblood of the housing market, but numbers are dwindling to
dangerously low levels. Fewer affordable homes will make it even tougher.
The government should be doing more, not less, to help those struggling to
get on the property ladder.”

It comes as the latest report from Capital Economics, a consultancy, predicts
house prices across the UK will slump by 10% in 2011 amid rising
unemployment following the deep spending cuts announced last week, coupled
with an ongoing shortage